People wouldn't have minded $649 or $699. If NV wanted people to get used to $1K flagship GPUs, wouldn't it have been better to gradually raise the price? Didn't NV learn at all from AMD raising the price from $369 to $549 in 1 generation and how the market reacted? Now NV thinks they can go from $499 480/580/680 to $1000 in 1 shot? Not just that but 2013 is riddled with mostly console ported games. It's not the smartest period in PC gaming to charge $1000 for 500mm2+ GPUs because it's not as if games like Bioshock Infinite, Starcraft 2, Company of Heroes 2 would need this type of GPU power. Most people won't upgrade for Crysis 3 alone since Titan can't even max that! GTA V, BF4 and Metro LL don't even have a release date yet.
GTX280/480/580 all charged way lower premiums for each 1% increase in performance over AMD cards. NV DOUBLED the price premium for each 1% increase in performance the Titan has over HD7970GE that it charged for 480/580 over 5870/6970. Even GTX280's price premium wasn't this bad. If NV maintained $7-8 price premium / 1% increase in performance 480/580 had over $369 5870/6970 cards, the Titan should be about $700 over the $430 1100mhz 7970. NV is charging that much not because of competition but because they tested the market with a nice price level and saw people paying $1000 for a GTX690 for almost a full year. Even if AMD dropped 7970 to $299 tomorrow, NV would keep the Titan at $1000 and justify it as a single-GPU replacement for the 690. NV's brand positioning is now moving closer and closer to Apple in terms of both marketing its products and perception. They essentially took a 550mm2 "real" GTX680, added on some nice metal heatsinks and charged $1K for it. Sure it looks stunning on the outside but underneath it's still a $649 550mm2 GPU.
Why is the 680 still selling for $450 when 1Ghz 7970's are going for $380? NV's prices have not been in-line with AMD's for about 6 months now. It seems consumers are willing to pay more for slower NV cards and that's the end of it. NV caught on to this since they saw GTX600 still outselling HD7000 despite being slower. Now they think they are Apple and can just start attaching even larger premiums thinking their customer base will keep paying for the brand name. GTX690 sold well, so NV will just keep going. The only thing that can change is consumers stop paying these prices or AMD launches faster HD7970GE which isn't possible since they confirmed it's their fastest on the desktop for all of 2013.